Today we would look into the USD/CHF currency pair.
First, looking at both currencies individually, there is more tension around the American dollar than the Swiss franc. In the United States we have investors taking a break from trading the dollar, which was getting stronger over the past few weeks. Now the upwards movement has stopped as we wait to learn who Donald Trump will nominate as the next Federal Reserve chief. If he chooses an economist known for supporting hawkish policy, then the dollar will rally again.
Meanwhile, not much is going on in Switzerland. The Swiss franc is somewhat influenced by the price of gold, and that has remained within the same price range over the month of October. Similarly, there has been no significant change in the CHF’s movement.
On the daily chart today we have a pivot point located at 0.9962. If the price falls below it, look for the support levels at 0.9927, 0.9904, and 0.9869. Conversely, if the price makes room for itself above the pivot, then we need to watch out for any resistances that might be overcome. Our nearby resistance levels lie at 0.9985, 1.0020, and 1.0043.
As of the moment of this article’s publication the USD/CHF pair is trading around 0.9987, above the pivot point and just above the first daily resistance level. Technical indicators unanimously recommend taking a buy position on the pair.
